fbpx
Log in

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *

Eurozone sees some positive growth

eumapEconomic activity in Germany was reported to have surged, recording its strongest rate of private sector output in eight months.

The rise in productivity fanned hope that the fledgling recovery in the euro region could be gaining traction.

The closely watched purchasing manager’s index from Markit revealed that economic activity in the zone had its highest reading in 46 long months.

Growth in new orders and in job creation was the strongest since the middle of 2007.

French output in the private sector expanded for the second month in a row, although at a slower pace than German growth. Still, it was the country’s best performance since 2011.

The peripheral countries on average were ahead of production in France and not very far behind that in Germany. The data suggests growth in the eurozone was 0.3% in the first quarter of 2015.

The hopeful results have been aided by a let-up in deflation which has meant that the price of goods and services fell at their lowest rate since July. In addition, falling oil prices and a weak exchange rate have assisted.

While it may be too early to tell, some analysts believe the improvements could have further been stimulated by the quantitative easing programme launched by the European Central Bank.

President of the ECB Mario Draghi is confident the bond-buying will have beneficial effects in the real economy. "Lower interest rates in capital markets are increasingly being transmitted through the entire financial intermediation chain," Mr Draghi said to the European Parliament on Monday.

Pin It

You must be a registered user to make comments.
Please register here to post your comments.